Many Kenyans who have at some point used PayPal to receive funds for various services can now rejoice after the country's largest telco has finally rolled out the feature to withdraw directly from PayPal on the M-PESA app. This has been a long time coming and now we don’t have to go through manual logins and frustrating redirects anymore. For many of us, it’s a game-changer and makes accessing our international PayPal funds so much easier.
But just as we were getting used to this new feature, reports emerged that PayPal’s Mobile Money Service, powered by Thunes and previously integrated with M-PESA, will be shutting down. The news has left many of us scratching our heads and wondering why and what’s next for the service.
PayPal Mobile Money Shutdown: What You Need to Know
A pop-up notification on the PayPal web app informed users that PayPal Mobile Money will cease to exist on August 16, 2025. Thunes, the digital payments provider behind this service, has confirmed the news and advised that all users will need to link their PayPal accounts directly to the M-PESA app to continue making transfers.
For years, PayPal Mobile Money, powered by Thunes, was a staple for Kenyan users, a way to move funds between PayPal and M-PESA. But with the shutdown of this standalone service, we will have to adapt to a new way of linking and accessing our PayPal accounts via the M-PESA app.
While the direct link to M-PESA through the app is expected to be better and more efficient, the complete discontinuation of PayPal Mobile Money has raised some questions. Why, some ask, couldn’t PayPal just allow both options to coexist especially for merchants and users who have grown used to the old service?
How to Link PayPal Directly to M-PESA Before August 16
To avoid any disruption in service before August 16th, follow these steps to link your PayPal account to the M-PESA app:
Update the M-PESA App: Make sure you’re using the latest version of the M-PESA app. Go to your app store (Google Play Store or Apple App Store) to check for any updates.2. Go to PayPal: Open the M-PESA app, then go to the PayPal option under Finance or Global Services.
Log in: When prompted, log in to your PayPal account.
Link accounts: Follow the prompts to link your PayPal and M-PESA accounts. If you haven’t already linked them through the PayPal Mobile Money portal, you’ll need to do so now.
Once linked, you can transfer funds between PayPal and M-PESA directly within the app without any extra logins or third-party services.
Why Is PayPal Closing Mobile Money?
PayPal shutting down PayPal Mobile Money powered by Thunes has left many long time users wondering. While the direct integration with M-PESA is more efficient, why couldn’t the mobile money service be an option for users who prefer the old system.
Many merchants, freelancers and businesses who use PayPal in Kenya have used the old system, loved its ease of use and speed in moving funds. This transition though beneficial in the long run requires some adjustment and many are wondering why PayPal couldn’t just offer both options for different needs.
What Does This Mean for Kenyan Users and Businesses?
For Kenyan users the key takeaway is that the old PayPal Mobile Money service will no longer work after August 16, 2025. But with the new M-PESA and PayPal integration you can still access your funds and make payments directly from within the M-PESA app. This will be faster and more secure and eliminates the need for third party sites and manual logins.
Businesses and individuals who used the PayPal Mobile Money portal will need to get familiar with the new integration. Once you link your accounts you can continue to transact as usualLooking Ahead: The Future of Digital Payments in Kenya
Kenya has been a pioneer in mobile payments with M-PESA leading the way. The direct PayPal-M-PESA integration is just the latest in a series of innovations that have made Kenya a hub for digital finance in Africa. This is the trend of simplifying payments and removing barriers for users, making it easier to send and receive money across borders.
While some may miss the old service the switch to a direct link between M-PESA and PayPal will be more convenient for all users, individual and business who use digital payments for their daily transactions.
Conclusion: Get Used to the New System
Before PayPal Mobile Money closes on August 16, 2025 Kenyan users need to link their PayPal accounts to the M-PESA app. The new update may bring some changes but overall it simplifies international payments and makes PayPal and M-PESA more smooth for everyone.